1. 7 CHAPTER 7 Design of Work Systems
Operations Management, Eighth Edition, by William J. Stevenson
Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.
McGraw-Hill/Irwin

2. Major Factors Affecting Productivity
Technological Development and Raw Materials
Employees’ Job Performance
Ability
Motivation
Motivational Theories (Theory X, Theory Y, and Theory Z)

3. Technological Development and Raw Materials
Technology
Materials
Plant Layout
Job Designs

4. Employees’ Job Performance
Ability
Skills
Training
Experience
Knowledge
Education

5. Employees’ Job Performance
Motivation
Economic Motivators
Individual’s Needs
Hierarchy of Needs
Formal Organization
Organization Structure
Leadership Climate
Personnel Policies

6. Motivation Informal Organization Leadership Type of Leadership Size
Goals
Cohesiveness
Leadership
Type of Leadership
Autocratic
Close Supervison
Democratic
General Supervision

7. Motivation
Union
Cohesiveness
Goals
Leadership

8. Maslow’s Hierarchy of Needs
Achievement, Creativity, Development & Advancement
SELF
FULFILLMENT
Self-respect, Recognition, Prestige, Status
EGO
Friendship
SOCIAL
Shelter & Protection
SECURITY
Hunger, Thirst, Sex
PHYSICAL

9. Theory X People lack motivation People are basically lazy
People only work because they have to

10. Theory Y People are interested in goal accomplishments
People have the potential for creativity
People have many skills and potentials

11. Theory Z William G. Ouchi’s
This theory explores the differences between the Japanese and American management systems.
Japanese system is designated as J type
American system is designated as A type
U.S. organizations that have some characteristics of the Japanese organizations as Z type
Examples: IBM, Eastman-Kodak, Hewlett-Packard

12. Theory Z Characteristics of Z type organizations
Employment must be stabilized
This means employment security
Unions must be involved but not in an adversary relationship
A system for slow evaluation and promotion should be developed

13. Job Design
Job design involves specifying the content and methods of job
What will be done
Who will do the job
How the job will bob will be done
Where the job will be done
Ergonomics

14. Design of Work Systems Specialization
Behavioral Approaches to Job Design
Teams
Methods Analysis
Motions Study
Working conditions

15. Job Design Success Successful Job Design must be:
Carried out by experienced personnel with the necessary training and background
Consistent with the goals of the organization
In written form
Understood and agreed to by both management and employees

16. Specialization in Business: Advantages
For
Management:
1. Simplifies training
2. High productivity
3. Low wage costs
Labor: 1 .
Low education and
skill requirements 2.
Minimum
responsibilities 3.
Little mental effort
needed

17. Disadvantages For Management: Labor: 1. 1. Monotonous work
Difficult to motivate
quality
2. Worker dissatisfaction,
possibly resulting in
absenteeism, high
turnover, disruptive
tactics, poor attention
to quality
Labor:
1. Monotonous work
2. Limited opportunities
for advancement
3. Little control over work
4. Little opportunity for
self-fulfillment

18. Behavioral Approaches to Job Design
Job Enlargement
Giving a worker a larger portion of the total task by horizontal loading
Job Rotation
Workers periodically exchange jobs
Job Enrichment
Increasing responsibility for planning and coordination tasks, by vertical loading

19. Motivation and Trust Motivation Trust
Influences quality and productivity
Contributes to work environment
Trust
Influences productivity and employee-management relations

20. Teams Benefits of teams Self-directed teams Higher quality
Higher productivity
Greater worker satisfaction
Self-directed teams
Groups of empowered to make certain changes in their work process

21. Methods Analysis Methods analysis Analyzing how a job gets done
Begins with overall analysis
Moves to specific details

22. Methods Analysis
The need for methods analysis can come from a number of different sources:
Changes in tools and equipment
Changes in product design or new products
Changes in materials or procedures
Other factors (e.g. accidents, quality problems)

23. Methods Analysis Procedure
Identify the operation to be studied
Get employee input
Study and document current method
Analyze the job
Propose new methods
Install new methods
Follow-up to ensure improvements have been achieved

24. Analyzing the Job Flow process chart Worker-machine chart
Chart used to examine the overall sequence of an operation by focusing on movements of the operator or flow of materials
Worker-machine chart
Chart used to determine portions of a work cycle during which an operator and equipment are busy or idle

25. Details of Method FLOW PROCESS CHART ANALYST D. Kolb PAGE 1 of 2
Job Requisition of petty cash
Details of Method
ANALYST
D. Kolb
PAGE
1 of 2
Operation
Movement
Inspection
Delay
Storage
Requisition made by department head
Put in “pick-up” basket
To accounting department
Account and signature verified
Amount approved by treasurer
Amount counted by cashier
Amount recorded by bookkeeper
Petty cash sealed in envelope
Petty cash carried to department
Petty cash checked against requisition
Receipt signed
Petty cash stored in safety box

26. Motion Study Motion study is the systematic
study of the human motions used
to perform an operation.

27. Motion Study Techniques
Motion study principles - guidelines for designing motion-efficient work procedures
Analysis of therbligs - basic elemental motions into which a job can be broken down
Micromotion study - use of motion pictures and slow motion to study motions that otherwise would be too rapid to analyze
Charts

28. Developing Work Methods
Eliminate unnecessary motions
Combine activities
Reduce fatigue
Improve the arrangement of the workplace
Improve the design of tools and equipment

29. Working Conditions

30. Working Conditions (cont’d)
Noise & Vibration
Causes of Accidents
Safety
Work Breaks

31. Work Measurement Standard time Stopwatch time study Historical times
Predetermined data
Work Sampling

32. Compensation Time-based system Output-based (incentive) system
Compensation based on time an employee has worked during a pay period
Output-based (incentive) system
Compensation based on the amount of output an employee produces during a pay period

33. Form of Incentive Plan Accurate Easy to apply Consistent
Easy to understand
Fair

34. Compensation Individual Incentive Plans Group Incentive Plans
Knowledge-Based Pay System
Management Compensation

35. Learning Curves
Learning curves: the time required to perform a task decreases with increasing repetitions

36. Learning Effect
Time per repetition
Number of repetitions

37. Learning with Improvements
Time per unit
Time
Average
Improvements may create a
scallop effect in the curve.

38. Applications of Learning Curves
Manpower planning and scheduling
Negotiated purchasing
Pricing new products
Budgeting, purchasing, and inventory planning
Capacity Planning

39. Worker Learning Curves
A (underqualified)
B (average)
C (overqualified)
Time/cycles
One week
Standard time
Training time

40. Cautions and Criticisms
Learning rates may differ from organization to organization
Projections based on learning curves should be viewed as approximations
Estimates based the first unit should be checked for valid times

41. Cautions and Criticisms
At some point the curve might level off or even tip upward
Some improvements may be more apparent than real
For the most part, the concept does not apply to mass production